Gold production down 13% at Blanket Mine
BUSINESS REPORTER
Caledonia Mining Corporation says gold output was down 13% at Blanket Mine to 16,036 ounces in the first quarter of the year from the same period in 2022, weighed down by mechanical breakdowns and logistical issues.
In the comparable quarter last year, Blanket produced 18,515 ounces of gold.
Despite the drop in output, management is bullish of an annual output of between 75,000 and 80,000 ounces of gold.
Caledonia said Bilboes produced 105 ounces of gold in the period under review after commencing “production of gold from oxides derived from pre-stripping works in the last few days of the quarter”.
“Commencement of oxide production at Bilboes has been slower than anticipated, having been adversely affected by inconsistent grades, mechanical breakdowns and the poor availability of spare parts and alternative equipment,” it said.
“As highlighted in the production guidance dated January 13, 2023, the on-mine cost/oz of Bilboes oxide production was anticipated to be $1,200-1,320 and is hence a relatively low margin activity, which is primarily justified by the parallel benefit of pre-stripping in anticipation of the development of the Bilboes sulphide project.”
Caledonia said it was reviewing the initial evidence of this activity given some of the initial challenges and relative to the larger sulphide project, for which a feasibility study is being updated.
“Accordingly, going forward, we will report actual production achieved each quarter at the oxides project as part of the pre-stripping activities and, accordingly, have withdrawn guidance on the low-margin oxide production,” it said.
Caledonia CEO Mark Learmonth said: “Gold production at Blanket is usually lower in the first quarter of each year and increases in the following quarters. This trend is in evidence this year, albeit production in the first quarter of 2023 was below our target due to a series of issues including equipment failures and logistical issues. These issues have been resolved and production to date in April has been higher than expected.”
